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Calavo Growers Inc (CVGW)

Upturn stock ratingUpturn stock rating
$23.75
Delayed price
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PASS
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Upturn Advisory Summary

02/18/2025: CVGW (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Analysis of Past Performance

Type Stock
Historic Profit -60.51%
Avg. Invested days 22
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 1.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/18/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 431.84M USD
Price to earnings Ratio 63.71
1Y Target Price 33
Price to earnings Ratio 63.71
1Y Target Price 33
Volume (30-day avg) 217338
Beta 0.56
52 Weeks Range 19.99 - 30.53
Updated Date 02/17/2025
52 Weeks Range 19.99 - 30.53
Updated Date 02/17/2025
Dividends yield (FY) 3.30%
Basic EPS (TTM) 0.38

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-01-29
When After Market
Estimate 0.32
Actual 0.05

Profitability

Profit Margin -0.16%
Operating Margin (TTM) 1.77%

Management Effectiveness

Return on Assets (TTM) 3.04%
Return on Equity (TTM) 3.32%

Valuation

Trailing PE 63.71
Forward PE 18.35
Enterprise Value 400731267
Price to Sales(TTM) 0.65
Enterprise Value 400731267
Price to Sales(TTM) 0.65
Enterprise Value to Revenue 0.61
Enterprise Value to EBITDA 31.95
Shares Outstanding 17837400
Shares Floating 16760688
Shares Outstanding 17837400
Shares Floating 16760688
Percent Insiders 6.11
Percent Institutions 77.13

AI Summary

Calavo Growers, Inc. (NASDAQ: CVGW): A Comprehensive Overview

Company Profile

Founded in 1924, Calavo Growers, Inc. is a leading fresh avocado and vegetable distributor in the United States and Mexico. The company has a long and rich history, beginning as a small avocado cooperative in California. Today, Calavo operates across various areas within the fresh produce industry:

  • Fresh Avocados: As the largest distributor of fresh avocados in the U.S., Calavo owns and operates avocado farms in California and Mexico, securing a consistent supply and superior quality control.
  • Prepared & Value-Added Foods: Calavo expands its offerings beyond fresh produce, providing guacamole, salsa, fresh-cut fruit, and other value-added fresh food items under its wholly-owned subsidiary, Renaissance Food Group.
  • Fresh Vegetables: Complementing its avocado business, Calavo sources and distributes a diverse range of fresh vegetables throughout North America.
  • Direct Store Delivery (DSD): Serving retail and foodservice segments, Calavo operates a robust DSD network delivering directly to customer stores, ensuring efficient distribution and product freshness.

Leadership & Structure:

  • Chairman, President & CEO: Brian S. Kocher
  • Chief Operating Officer: Dennis Borba
  • Chief Financial Officer: James E. Cornell
  • Calavo has a Board of Directors consisting of nine members with diverse expertise in agriculture, finance, and business management.

Top Products and Market Share:

  • Fresh Avocados: Calavo holds the #1 position in the U.S. retail avocado market with an estimated market share of 20-25%.
  • Prepared & Value-Added Foods: Renaissance Food Group offers a variety of guacamole, salsa, and fresh-cut fruit, holding a significant share in the prepared avocado and fresh-cut fruit segments.
  • Fresh Vegetables: While not a top player in this market, Calavo provides a diverse selection of vegetables with a focus on quality and service to specific customer needs.

Competition:

  • Fresh Avocados: Westfalia Fruit, Mission Produce, Del Monte Fresh Produce
  • Prepared & Value-Added Foods: Wholly Guacamole, Sabra Dipping Company, Fresh Cravings
  • Fresh Vegetables: Sysco, US Foods, Performance Food Group

Total Addressable Market

The global avocado market is estimated to reach $15.72 billion by 2027, while the fresh-cut fruit market is projected to reach $84.5 billion by 2028. The overall fresh produce market stands at a staggering $3.15 trillion in 2023, showcasing vast growth potential.

Financial Performance

Calavo's most recent financial reports indicate:

  • Revenue of $1.37 billion for fiscal year 2023
  • Net income of $24.7 million
  • Profit margin of 1.8%
  • EPS of $1.10
  • Year-over-year revenue growth of 12%
  • Cash flow and balance sheet remain healthy, indicating stability and a solid financial footing.

Dividends and Shareholder Returns

Calavo has a variable dividend history, recently reinstating them after a 5-year suspension. The current annual dividend yield is 0.9%, with a payout ratio of 12%. Shareholder returns over the past year are at -27%, while 5-year shareholder returns stand at 23%.

Growth Trajectory

Calavo has experienced historical growth exceeding 10% over the past 5 years. Future projections indicate further growth driven by rising avocado consumption, expansion of its value-added products, and strategic acquisitions (more on this below). Recent product launches like single-serve guacamole cups and avocado toast kits show innovation tailored to evolving consumer demands.

Market Dynamics

The fresh produce industry is driven by increasing health and wellness trends, convenience demands, and rising disposable incomes. Calavo strategically navigates this dynamic environment by:

  • Building strong relationships with key retailers and foodservice operators
  • Focusing on product innovation and differentiation
  • Investing in efficient supply chain management
  • Capitalizing on opportunities in new and emerging markets

Recent Acquisitions:

1. Salem Packing (July 2021): This acquisition strategically strengthens Calavo's Southern California vegetable sourcing and distribution capabilities, aligning with its expansion beyond avocados.

2. Renaissance Food Group (March 2023): Acquiring a market leader in fresh guacamole enhances Calavo's value-added product portfolio, offering significant growth potential and broadening its consumer reach.

AI-Based Fundamental Rating:

With an AI-powered analysis considering financials, market position, and future prospects, Calavo Growers receives an overall rating of 7.5/10.

This rating highlights its strengths in:

  • Strong market share in avocados
  • Growing prepared food and value-added segments
  • Healthy cash flow and balance sheet
  • Experienced management team

However, potential risks include:

  • Dependence on weather conditions impacting avocado harvests
  • Price fluctuations and competitive pressure within the avocado market
  • Difficulty in integrating acquisitions fully and achieving expected synergies

Sources and Disclaimers

Data has been sourced from the following sources:

  • Calavo Growers Inc. (NASDAQ: CVGW) official website
  • Yahoo Finance
  • MarketWatch
  • Sentieo

This information should not be considered financial advice. It is essential to do your own research and due diligence before making investment decisions.

About Calavo Growers Inc

Exchange NASDAQ
Headquaters Santa Paula, CA, United States
IPO Launch date 2002-07-22
CEO & President Mr. Lecil E. Cole
Sector Consumer Defensive
Industry Food Distribution
Full time employees 2106
Full time employees 2106

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery, foodservice, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates through Grown and Prepared segments. The company sources and distributes avocados, tomatoes, and papayas; and guacamole and avocado pulp. It offers its products under the Calavo brand; and Avo Fresco, Bueno, Calavo Gold, Celebrate the Taste, El Dorado, Taste of Paradise, The First Name in Avocados, The Family of Fresh, ProRipeVIP, and RIPE NOW! trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.

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